Ponce was born Carlos Ponce Freyre in Santurce, Puerto Rico. His parents, Carlos Ponce, Sr. and Esther Freyre, emigrated from Cuba after the Cuban Revolution led by Fidel Castro. After his birth, the family moved to Humacao, where Ponce was raised. As a child, he actively participated in his school's plays and at home he would often put on a show for the family where he would sing the latest tunes. "Carlitos", as he is known in Puerto Rico, started to appear in television commercials at the age of six. He attended high school in Humacao and was a member of the school's drama club.

In 1986, the Ponce family moved to Miami, Florida and Ponce continued to participate in his school's productions. He was named the best student actor of the southern region of the United States.

In 1990, Ponce participated in the Southeastern Theatre Conference and competed for the chance to win a scholarship. He won and enrolled in the New World School of the Arts conservatory. However, the Spanish-language television station Univision offered Ponce the opportunity to host a show called "Hablando." This was his first serious television debut and after his debut he gave up his university studies.

After the show came to its end, Ponce went to Mexico to visit a friend. While there he visited the Televisa television station. The talent director of the station met Ponce and offered Ponce his first role in a soap opera:"Guadalupe." He participated in another soap opera for Televisa, "Sentimientos Ajenos," in which he played the main character. Ponce also sang the theme song for the production. He received the "Actor Revelation of 1997 Award" by Eres magazine and named "Best Actor" by TV y Novelas magazine.

In between productions, Ponce returned to Miami and Univision hired him as the host of a new show, "Control." He hosted the show for three years and won an "ACE Award".

In 2003, Ponce joined "Entertainment Tonight" as a correspondent. He also hosted An Entertainment Tonight Event — "Celebrity Weddings Unveiled," a CBS primetime special. Ponce hosted the 2006 Miss Universe pageant in Los Angeles, with Shandi Finnessey, Nancy O'Dell and Carson Kressley. In 2007, he starred in the Telemundo NBC Universal telenovela "Dame Chocolate." Ponce also starred in "Perro Amor" in 2010 on the same network. In 2012, Ponce began hosting the hit Puerto Rican singing competition for kids on Wapa Television called "Idol Kids Puerto Rico."

In 2013, Ponce appeared on Telemundo's "Santa Diabla" as Humberto Cano. In 2014, he was cast as Felix on ABC's "Cristela." The same year, he voiced a character on "The Pirate Fairy." In 2015, he played Matthew Wright on Paul Feig's "Spy." In 2016, he was been cast on "Devious Maids" to play the role of Ben.